CareDx, Inc. (CDNA) vs RadNet, Inc. (RDNT)

CareDx, Inc. and RadNet, Inc. are both Diagnostics & Research companies. RadNet, Inc. is the larger, with a market value of $5.6B against $3.2B — 1.8× the size. RadNet, Inc. has negative trailing earnings, so its P/E is not meaningful; CareDx, Inc. trades at 29.6×. CareDx, Inc. grew revenue faster over the last twelve months: 34.4% against 18.9%. CareDx, Inc. has the higher net margin (24.2% vs −0.93%) and the higher return on invested capital (130.1% vs 2.24%). Across the 20 metrics below, CareDx, Inc. leads on 15 and RadNet, Inc. on 5.

Valuation

Metric CDNA RDNT Diagnostics & Research median
P/E 29.62 n/m 33.95
P/S 7.15 2.43 4.87
P/B 7.70 3.95 3.12
Price to free cash flow 39.42 170.43 34.02
EV/EBITDA 22.60 19.86 25.20
EV/Sales 6.42 2.69 5.66
Earnings yield 3.38% (0.38%) (1.75%)
Free cash flow yield 2.54% 0.59% (0.13%)

Profitability

Metric CDNA RDNT Diagnostics & Research median
Gross margin 70.58% 11.53% 50.89%
Operating margin 23.61% 3.12% (8.57%)
Net margin 24.23% (0.93%) (6.37%)
Free cash flow margin 18.49% 3.28% 0.00%
Return on equity 29.49% (1.64%) (2.92%)
Return on assets 22.72% (0.55%) (6.71%)
Return on invested capital 130.06% 2.24% 0.00%

Growth

Metric CDNA RDNT Diagnostics & Research median
Revenue growth (TTM) 34.41% 18.92% 7.69%
EPS growth (last fiscal year) (143.01%) (725.00%) —
Revenue growth, 5-year CAGR 14.59% 13.74% 7.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CDNA RDNT Diagnostics & Research median
Debt to equity 0.00 0.94 0.11
Current ratio 4.58 1.48 2.02
Net debt to EBITDA 19.49 1.16 0.78

Dividend

Metric CDNA RDNT Diagnostics & Research median
Dividend yield — — 0.70%
Payout ratio 0.00 0.00 0.00

Size

Metric CDNA RDNT Diagnostics & Research median
Market cap 3.18b 5.60b 2.56b

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